Was Bernanke Giving a Farewell Speech?

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July 10 (Bloomberg) -- Morgan Stanley's Vincent Reinhart and Bloomberg's Phil Mattingly discuss Federal Reserve Chairman Ben Bernanke's speech at a Boston conference with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Affairs at the fed board of governors.

In addition to listening to laughter having to do with the ben bernanke interchange in south carolina, it sounded as he was giving a farewell speech about his tenure at the federal reserve.

It has to be a little frustrating on 100 days of the federal reserve history that the initial questions were all about 1/8 of the 1% of this history.

You could really see him opening up when he talked about a longer perspective.

He also opened up when he talked about the depression in the 1930's and contrasting that with the response of the federal reserve during the time.

It is clear of not recognizing the threats of financial stability and responding in terms of policy and a very responded way.

He did speak of carmen reinhart.

Tell everyone who that is.

That would be my wife.

This morning she was at the same conference making the point that it's very important that the federal reserve appreciate that it is an open economy.

It is more than what the federal reserve is holding.

Therefore it poses risks in terms of exchange rates and sovereign spreads.

He talked about currency wars and the potential.

I want to turn now to phil mattingly, joining us from washington , from bloomberg news.

You listened to ben bernanke answering questions.

What do you come away with?

What are some of the points we need to focus on?

A few things i noticed.

You could tell he was a little frustrated with it.

He really enjoys the legacy part and the academic setting talking about policy stuff.

Once again, we saw a defense of what the fed has been trying to do in terms of communication efforts.

He says to consider the counterfactual.

Perhaps people would build up positions for the bonds going up indefinitely.

Another thing i thought was interesting talking about the political environment that everything is in right now, they are looking at the fiscal situation right now and they are wary of the changes congress has put into place are going to be impacted.

He even said when they are doing the forecast that they are worrying about the lag and they are not sure some of the fiscal issues that have been put into place, what kind of impact that will have so that's an interesting thing to watch going forward.

This text has been automatically generated. It may not be 100% accurate.


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